Detsky Mir

Detsky Mir Group is the largest children's goods retailer in Russia and Kazakhstan, comprising Detsky Mir and ELC stores, which offer toys, products for pregnant women and infants, children’s apparel and footwear, stationery, arts and crafts kits, and sporting goods.

Business description

In February 2017, Detsky Mir completed its IPO on the Moscow Exchange. The share offering was 2.1x oversubscribed, with a placement price RUB 85 per share, implying a market capitalisation of RUB 62.8bn and an EV/EBITDA multiple of 9x. Trading commenced on 10 February 2017 under the ticker symbol DSKY. The success of Detsky Mir's IPO can be seen as recognition of the company's outstanding performance in recent years.

As of 31 December 2016, Detsky Mir Group had 525 stores (480 Detsky Mir stores and 45 ELC stores) in 171 Russian cities and seven cities in Kazakhstan. The company delivered significant growth during the past two years, opening 103 new Detsky Mir stores and 1 ELC in 2015, and another 100 Detsky Mir stores and 1 ELC store in 2016. The Group’s total selling space as of 31 December 2016 was 596,000 sq m.

In 2016, Detsky Mir’s online store (http://www.detmir.ru) became the largest retailer in terms of online sales in the specialised children's goods market. Over the past few years, Detsky Mir’s online store shows significant sales dynamics growth.

One of the key drivers of revenue growth was the in-store pick-up feature launched in June 2015: around 50% of online orders in 2016 were picked up in Detsky Mir stores. In addition, orders can be collected at Ozon.ru pick-up points under a partnership agreement. The Detsky Mir online store had a total of 1,387 own and partner pick-up points as of 31 December 2016.

Detsky Mir intends to continue its rapid development in Russia and Kazakhstan, with a focus on increasing the number of stores in the Moscow region, St Petersburg, and cities with populations over 50,000 and a high potential for business growth.